Forward on the left analog stick toggles caps lock which determines whether you run or walk. That is as good as it gets due to the way Morrowind on PC is designed. It works fine once you get the hang of it.

When selling or removing items from the inventory, holding L3 will remove a single item from a collection at a time. Selecting an item with the right trigger and quickly pressing the A button will immediately select all the items. This makes inventory management easier.

Pressing and holding R3 will enable vanity view. Zoom in and out with the left and right trigger.

I never had problems, but in case you do you can try changing "Joystick Look Up/Down=" to 0 and "Joystick Look Left/Right=" to 0 in the Morrowind.ini file.VERSION 2.0Version 2.0 has some improvements and tweaks. Now you can change weapons and spells while continuing to sneak. There are some other improvements as well.